The argument goes that the higher the Bitcoin hash rate, the more secure the network, the higher the investor confidence will be, driving up demand. Therefore, Keiser argues that price is playing catch up with network fundamentals.

Network Fundamentals

The hash rate of a cryptocurrency — sometimes referred to as hashing or computing power — is a parameter that gives the measure of the number of calculations that a given network can perform each second. A higher hash rate means greater competition among miners to validate new blocks; it also increases the amount of resources needed for performing a 51% attack, making the network more secure.

The string of new records posted throughout summer is a bullish sign, with analysts and traders alike buoyed by signs of the strength and robustness of the network.

Looking ahead

Bitcoin’s halving — a pre-coded 50% reduction of block rewards for miners— remains some time away: May 2020.

While the event can have bullish implications for a coin’s price (by increasing scarcity), its impact on miners is keenly watched, with some concerned that lower block rewards will deter network participants and adversely impact the network's hashing power.

This summer, Litecoin (LTC) creator Charlie Lee — who had forecast a post-halving shock to the coin’s mining ecosystem — had his expectations overturned when the network’s post-event hash rate was revealed to be just as robust as ever.

4 Comments

DowntownSomboranac

Fraud warning!! No Binance airdrop!!

Andromotos

I did not hit 82 TH today, it hit 82 Exahash today which is 82 000 000 THs!

Mitsui

Keiser was wrong earlier. Way off from his predicted numbers.

John Barrett

Max Keiser I love you man but for the love of Jehovah PLEASE stick with podcasting!!!

Your track record as a prophet is miserable!!!!

Remember when you were TELLING THE WORLD that Silver was going to hit $16,000 per ounce?

Remember that?

Stacy please, please, please make sure Max gets his meds and gets in bed early and doesn't drink too much coffee . . . etc. We're counting on you and your intelligence and endurance to keep Max pointed in the right direction, to keep the old boy out of trouble and to keep the boy from making himself look like a damn fool.